Although some traders believe the markets are due for a correction this fall, I do not believe the markets will have any significant correction prior to the election.
However, almost any correction, regardless of the reason for the correction, whether it is from a terrorism attack abroad or domestically, domestic or international economic deterioration or a geopolitical surprise, it will be associated with the current administration. The perception is that Hillary Clinton will continue the Obama administration’s policies, which would mean it will have a dampening impact on the Hillary Clinton’s candidacy. Regardless of what voters may say, they often vote for what they believe will provide them with economic security, which can have a direct impact on their quality of life.
From a trader’s point of view, a trader that is seeking volatility not a directional bias; any directional move up or down will provide a trading opportunity.